The most valuable resource a company has in today's highly competitive
economic environment is its employees. Successful companies use employee benefits as a
valuable tool to attract, reward and keep the best employees, as well as to improve
performance. The selection of a benefits package is a time consuming and often mind
numbing affair. However, this is a critical business decision that requires careful
analysis and review.
The Bryton Companies offer the following employee benefit plans:
Let us provide your business with a benefit and cost analysis. Use our online interactive form or our printable Employee Census form indicating all employees eligible for group coverage. We will provide you a market analysis comparing benefits and costs among our major insurance carriers. No Obligation, No Cost to you.
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Group Health Insurance Plans
A group health insurance plan offers a number of employees (2 or more) and their
dependents insurance under a single policy, issued to their employer, with individual
certificates given to each insured employee. Types of plans include:
- Health Maintenance Organizations (HMO)
- Lower in Cost Than PPO or Indemnity Plans
- No Deductible, Only Co-Pays for Service
- Routine Physicals And Preventive Care Usually Covered
- No Flexibility-Use Only Prescribed Doctors and Hospitals
- Recommended If Employees Contribute To Premiums
- Out-of-Plan Reimbursement Usually Lower Than Indemnity or PPO
- Preferred Provider Organizations (PPO)
- Moderately Priced, Usually Between Indemnity and HMO Plans
- Minimal Deductible and Co-Pays In Network
- Flexibility- Point Of Service Decision to Use Network Physician Or Your Own
- Recommended If Employees Contribute To Premiums But Want Flexibility To Choose Provider
- Out-of-Plan Reimbursement Paid At Usual, Customary and Reasonable (UCR)
- Point of Service Plans (POS)
- Lower in Cost Than PPO or Indemnity Plans
- No Deductible in Network, Deductible Applies for Out of Network Services
- Co-Pays for Service in Network, Deductible plus 20% for Non-Network
- Routine Physicals And Preventive Care Usually Covered in Network Only
- Must Use Only Prescribed Doctors and Hospitals to Receive Highest Benefit
- Recommended If Employees Contribute To Premiums
- Out-of-Plan Reimbursement Usually Lower Than That of Indemnity or PPO
- Indemnity Plans
- Higher than Average Premium Cost To Employer
- Employees Share Cost In Deductibles And Co-Pays
- Physicals and Routine Care Usually Not Covered
- Total Flexibility - Choose Any Doctor Or Hospital
Group Life Insurance
An employer provided benefit that pays the beneficiary of an employee a
fixed sum at the death of an employee. Generally, the premium paid by the employer for
this benefit is deductible. The Internal Revenue Service has 4 guidelines that employer
provided life insurance must meet in order to be considered Group Life Insurance:
- The Plan must provide a general death benefit which is excludable from income;
- It must be provided to a employees as compensation for services performed as an
employee;
- The insurance must be provided under a policy carried directly or indirectly by the
employer; and
- The amount of insurance provided to each employee must be computed under a formula that
precludes individual selection of such amounts.
There are many different ways to design a Group Life Insurance Plan. Employers are
given wide latitude in how these plans are set up. For example, an employer can select a
flat amount, i.e. $25,000 per employee, or a multiple of each employee's salary, i.e. 1 or
2 times base salary up to a maximum amount.
Delta Dental Insurance
Group Disability Income
Long Term Disability
Group Long Term Disability (LTD) is an employer provided benefit that is designed to
assist an
employee in replacing income lost as a result of a disability. The method in which most
insurance
companies use to calculate the percentage of replaceable income usually falls in the range
of 60% of gross income. The goal being that the LTD plan is designed to replace a portion
of an employees lost income that is close to the employee's after tax take home pay. The
following are some provisions that make up the bulk of a Long Term Disability contract.
- Maximum Covered Salary
- This is determined by the employer and the total
volume of salary of the employees in the company.
- Elimination Period
- This is the amount of time that must pass before a disabled
employee becomes eligible for benefits. This can be anywhere from 30 to 180 days.
- Duration of Benefits
- This represents how long benefits will be payable, i.e.
to age
65, or standard retirement age.
- Own Occupation Protection
- This feature ensures that if an employee is
disabled,
and can not perform the material duties of his or her own occupation that they were
trained for - they will still be considered totally disabled. This period can be as short
as
2 years or as long as standard retirement age (ADEA).
- Conversion Privilege
- The policy can be converted to an individual policy if an
employee changes jobs.
- Residual Disability
- If an employee is disabled and then returns to work, and
experiences an earnings loss of 20% or greater, the employee will still receive a benefit
to offset this earnings loss.
Short Term Disability
Group Short Term Disability (STD) is an employer provided benefit that is designed to
assist an employee in replacing income, on a short term basis, lost as a result of a
disability. The method in which most insurance companies use to calculate the percentage
of replaceable income usually falls in the range of 60% of gross weekly income. The goal
being that the STD plan is designed to replace a portion of an employees lost income that
is close to the employee's after tax take home pay. The following are some provisions that
make up the bulk of a Short Term Disability contract.
- Maximum Covered Salary
- This is determined by the employer and the total
volume of salary of the employees in the company.
- Elimination Period
- This is the amount of time that must pass before a disabled
employee becomes eligible for benefits. This can be anywhere from the 1st day of
disability to the 30th day.
- Duration of Benefits
- This represents how long benefits will be payable, i.e. 4
to 26 weeks.
- Residual Disability
- If an employee is disabled and then returns to work, and
experiences an earnings loss of 20% or greater, the employee will still receive a benefit
to offset this earnings loss.
Section 125/Cafeteria Plans
Sometimes known as a Flexible Spending Plan, Section 125/Cafeteria Plans allows employees to pay for certain medical expenses on a pre-tax basis. By paying for these expenses before being taxed, employees lower their taxable income, pay less in taxes and increase their take-home pay. These expenses include:
- Employee contributions toward medical-related insurance premiums.
- Medical-related expenses such as deductibles, con-insurance, or uninsured medical expenses.
- Dependent care expenses.
Section 125/Cafeteria Plans offer employees and employers a win-win situation when it comes to saving money. By offering a plan, employers are able to realize a number of benefits including:
- Reduced Payroll Costs - Social Security contributions are reduced for each dollar of employee participation!
- Cost Control - An employer can control the company's share of medical costs, without limiting employee choices.
- Address the Needs of a Diverse Work force - An employer can offer individually tailored benefits at little or no additional cost to the company.
- Recruit and Retain Quality Employees - An employer is viewed in a positive light by current and prospective employees because a benefit package is being provided with the employee's interests in mind.
With a Section 125/Cafeteria Plan, employers utilize third-party administration services coordinated by The Bryton Companies to handle the complete administration of their plans. Our Third Party Administrator services ensure employers of the proper implementation and operation of their plans. We feature timely reimbursement, phone enrollment assistance, and an audit guarantee!
TO HAVE ONE OF OUR REPRESENTATIVES CONTACT YOU REGARDING ANY OF THE ABOVE BENEFITS, CLICK HERE.
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Securities Offered Through QA3 Financial Corp., Member FINRA/SIPC and Advisory Services Offered Through QA3 Financial, LLC, an SEC Registered Investment Advisor. One Valmont Plaza, 4th Floor, Omaha, NE 68154. Telephone: 888/337-4094 |
